South Africa’s leading business cycle indicator fell by 1.8% in December 2024, reversing the previous month’s gains. The downturn was largely due to declines in passenger vehicle sales and residential building approvals, with only job advertisement growth showing improvement.
In December 2024, South Africa’s composite leading business cycle indicator experienced a significant decline of 1.8% month-over-month, following a revised upward increase of 0.7% the previous month. This notable downturn was primarily influenced by decreases in five out of the seven components assessed, overshadowing minor gains in one component while another remained static.
The decline was chiefly attributed to two factors: a reduction in the six-month smoothed growth rate of new passenger vehicle sales and a drop in the number of approved residential building plans. These elements played a critical role in the overall decline of the leading index, accentuating economic slowdowns in key sectors.
Despite the negative trends, one positive contributor was observed: an increase in the six-month smoothed growth rate of job advertisement space, indicating a potential area of economic strength. This component suggests that while certain sectors are contracting, there may still be growth opportunities in employment sectors worth noting.
In summary, South Africa’s leading index fell by 1.8% in December 2024, influenced chiefly by declines in vehicle sales and approved building plans. Despite this, growth in job advertisement space presents a glimmer of hope amidst broader economic challenges. Monitoring these trends is essential for understanding future economic conditions.
Original Source: www.tradingview.com
